The global modular UPS market was valued at USD 2.04 billion in 2018 and is expected to reach a value of USD 3.83 billion by 2024 at a CAGR of 11.14% during the forecast period (2019-2024). The trend to use smaller modular systems can trigger the demand of modular UPS market.

The ability to reconfigure a modular UPS system to meet load demands provides a degree of flexibility not available with fixed capacity UPS systems. This can be used to optimize operational efficiency, as the system will automatically power down the unrequired operations into sleep mode.

Additionally, modular UPS require lesser service and maintenance time. If a module requires replacement, it can generally be achieved within 30 minutes of a UPS service-engineer arriving on site. Owing to all these factors, modular UPS is increasingly replacing traditional vertical (tower type) structure UPS.

There is high growth in colocation and cloud services and increase usage of cloud applications among industries will drive modular UPS market in the forecast period.

However, the lack of awareness amongst non-data centers may act as a challenge for modular UPS market.

There has been a huge growth in the colocation industry in the past four years due to a severe increase in the number of enterprises that are depending upon several largescale applications that use the resources of multiple clouds.

Enterprises expect their colocation provider to offer higher layers of service to consolidate their infrastructure and integrate more cloud services as needs arise which is opening up new opportunities to the modular UPS market.

The least visible, but most critical parts of modern information technology and communication infrastructure, like data centers, which often require 100% uptime, are the primary drivers of the modular UPS market in the current market scenario.

The inconsistencies in power supply, which result in data loss, non-availability of essential services, a risk to hardware, and potential financial losses, ensure the need for UPSs, for the data center industry.

North America Holds the Largest Share in Modular UPS Market

North America stands out to be on top of the charts as the most significant region for modular UPS market.

The region has a high demand for modular UPS solutions, especially from the IT and telecommunication, healthcare and manufacturing sectors.

The organizations have a large base of operation creating a huge demand for data centers and colocation services, in turn, creating demand for modular UPS solutions.

Moreover, according to NADC, about two-thirds of the nearly 30 largest data center leases signed in 2016 in North America were signed by hyper-scale cloud service providers.

With this scenario coupled with increasing investments of companies, North America is expected to pertain its position as the biggest market for modular UPS solutions over the forecast period.

Competitive Landscape

The market is fragmented with the presence of more number of players like ABB Ltd., Emerson Network Power, Delta Power Solutions, Huawei Technologies Co. Ltd., Schneider Electric SE, General Electric, Gamatronic Electronic Industries Ltd, and others. Therefore, the market concentration will be low.